Last Updated on September 20, 2024 by Ian Golightly

Mobile home communities, once seen as an affordable solution for homeownership and a tightly-knit living arrangement, have evolved significantly over the decades. From their early days as privately owned, modestly priced places for those seeking affordable housing, to the current reality where many of these parks are owned and operated by large investment capital firms, the changes in ownership structure have had profound effects on the residents and the communities themselves.

This blog post explores the history of mobile home communities, their transformation from private ownership to corporate control, and the implications of this shift for residents today.

Early Days: The Birth of Mobile Home Communities (1930s–1950s)

Mobile home communities have their origins in the early days of the mobile home industry. As mobile homes, or “house trailers” as they were called in the 1930s, gained popularity as both vacation trailers and affordable housing options, there was a growing need for designated spaces where people could park these homes.

1930s: The Rise of Trailer Parks The concept of trailer parks first appeared during the Great Depression in the 1930s. Many people, struggling with economic hardships, turned to trailers as an inexpensive way to live. Unlike traditional homes, trailers offered mobility and cost efficiency. The need for permanent places to park and live in these trailers gave rise to early trailer parks, which were small, privately owned plots of land where people could rent space.

These early communities were typically family-owned or operated by small-scale entrepreneurs. The owners would maintain the land and infrastructure, while residents paid a modest fee for their plot and basic utilities. During this era, these communities were often seen as a temporary solution for transient workers or families struggling financially, but they began to attract a more diverse demographic over time.

1940s-1950s: The Post-War Boom After World War II, the demand for affordable housing skyrocketed due to the return of soldiers and the subsequent baby boom. Mobile homes, which had evolved in size and comfort, became an appealing option for many families. As more people sought permanent residence in mobile homes, the communities they lived in also became more permanent.

Private owners of trailer parks began to improve infrastructure, adding amenities like playgrounds, laundromats, and community centers, making these parks more attractive for long-term residents. This shift helped cement mobile home communities as a viable alternative to traditional housing, especially in suburban and rural areas. During this time, most mobile home parks were still owned and operated by individual landlords or families, providing a sense of stability and community for residents.

The Golden Age of Mobile Home Parks: Expansion and Affordability (1960s–1980s)

The 1960s through the 1980s is often referred to as the golden age of mobile home parks. During this period, the mobile home industry continued to grow, as did the communities where these homes were located. These decades saw an explosion in the number of mobile home parks across the United States, with many parks catering to retirees, working-class families, and people seeking a more affordable housing option.

1960s: A Sense of Community In the 1960s, mobile home parks were still largely family- or privately owned, and many were managed with a personal touch. These communities provided affordable, safe, and clean living spaces for residents, often with communal areas for socializing, making them especially attractive to retirees and small families.

Private owners took pride in their parks and often lived on-site, fostering a sense of community and close-knit relationships. Residents knew their landlords, and disputes or issues could often be handled with face-to-face discussions. This era was marked by stability, with long-term residents settling in these parks for decades.

1970s-1980s: Government Regulation and Growth In 1976, the federal government introduced the HUD Code, which established standards for the construction and safety of mobile homes, now called manufactured homes. This helped to legitimize mobile homes as a more permanent and high-quality housing solution.

With the industry now regulated, the quality and reputation of manufactured homes improved, and as more people moved into mobile home parks, developers saw opportunities to create larger, more sophisticated communities. During the 1980s, mobile home communities continued to expand, with parks often offering more amenities, such as swimming pools, clubhouses, and recreational facilities. Despite these improvements, the parks remained relatively affordable and were still primarily owned by individuals or small companies.

The Corporate Takeover: The 1990s and Beyond

The 1990s marked a major turning point in the ownership and operation of mobile home communities. As housing costs continued to rise, mobile home parks remained one of the few affordable housing options left. However, this affordability, combined with the steady rental income generated from park residents, caught the attention of investors.

1990s: The Entry of Private Equity and Investment Firms During the 1990s, mobile home parks began to attract interest from private equity firms and large investors. They realized that these parks could offer steady, predictable income due to the nature of mobile home ownership. While residents owned their homes, they rented the land on which those homes sat, creating a reliable revenue stream for park owners. Additionally, since moving a mobile home is costly and difficult, residents were often “captive” tenants, unlikely to leave even if rents increased.

This realization led to the corporate acquisition of mobile home parks on a large scale. Investment groups began purchasing parks from private owners, often consolidating them into large portfolios. This trend intensified into the 2000s and 2010s, with corporate ownership of mobile home parks becoming the norm.

2000s: Investment Capital Takes Over By the 2000s, the landscape of mobile home park ownership had changed dramatically. Large real estate investment trusts (REITs) and private equity firms increasingly acquired mobile home communities, transforming them into profit-driven enterprises. Companies such as Equity LifeStyle Properties (ELS), owned by billionaire Sam Zell, and Sun Communities became major players in the industry, owning thousands of parks across the U.S.

Corporate ownership brought significant changes to the day-to-day operations of these parks. Many companies saw mobile home parks as high-return, low-risk investments and sought to maximize profits by increasing rent and cutting maintenance costs. Residents, who were often unable to move due to the high costs of relocating their mobile homes, found themselves at the mercy of these large corporations.

Present Day: The Impact of Corporate Ownership on Mobile Home Communities

Today, a significant portion of mobile home parks in the U.S. are owned by large investment firms and REITs. This shift in ownership structure has had profound effects on the communities and their residents.

Rent Increases and Cost of Living One of the most notable impacts of corporate ownership is the steady increase in lot rents. While mobile homes themselves remain an affordable option, the rent for the land on which these homes sit has risen dramatically in many parks. Investment firms, seeking to maximize profits, have regularly raised rents, often outpacing the rate of inflation and wage growth.

For many residents, particularly those on fixed incomes, these rent increases have created significant financial strain. Some residents have been forced to sell their homes, unable to keep up with the rising costs, while others have taken on additional jobs to cover the expenses.

Reduced Maintenance and Community Atmosphere Another issue that has arisen with corporate ownership is the reduction in maintenance and upkeep. Under private ownership, park owners were often more hands-on, personally invested in the condition of their parks. In contrast, large corporations tend to prioritize profits over the well-being of residents, leading to reports of deteriorating infrastructure, poorly maintained amenities, and slow response times to repairs.

Additionally, the sense of community that once defined mobile home parks has, in many places, eroded under corporate ownership. Residents often feel like they are living in a profit-driven environment rather than a supportive community, with corporate owners making decisions based on financial goals rather than the needs of the people who live in the parks.

Resident-Owned Communities: A Growing Movement In response to these challenges, some mobile home park residents have begun to organize and take ownership of their communities. Resident-owned communities (ROCs) allow residents to collectively purchase the land on which their homes sit, giving them control over rent increases and park management. While the ROC movement is still relatively small, it is growing, offering a model for more equitable, resident-driven ownership of mobile home parks.

The Future of Mobile Home Communities: Challenges and Opportunities

As housing affordability continues to be a pressing issue in the U.S., mobile home communities remain a critical component of affordable housing. However, the increasing corporate control of these communities presents challenges for residents seeking stability and affordability.

Opportunities for Reform Advocacy groups and legislators have begun pushing for reforms to protect mobile home residents from predatory practices. Proposals such as rent control, better tenant protections, and support for resident-owned communities could help ensure that mobile home parks remain a viable and affordable housing option in the future.

Challenges Ahead The influence of investment capital in mobile home communities is unlikely to wane anytime soon. As long as these parks offer lucrative returns, they will continue to attract investors. The challenge will be finding a balance between profitability and ensuring that residents have access to affordable, stable housing without being priced out by rising rents and reduced services.

Conclusion

The history of mobile home communities is one of transformation—from small, privately owned parks that fostered a sense of community to large, corporate-owned enterprises driven by investment capital. As these communities continue to evolve, the key question will be how to balance the need for affordable housing with the pressures of a profit-driven industry. While corporate ownership has brought challenges, the growing movement for resident ownership and increased tenant protections offers hope for a more equitable future in mobile home living.